Governor Perdue’s FY 2010-2011 budget calls for a 4.3 percent reduction in state appropriations for K-12 public education. Once $55 million in federal “Education Stabilization Funds” used to replace state funding is factored in, however, that actual proposed reduction to the existing spending plan comes to 3.5 percent – or roughly $260 million.

Still, at 3.5 percent, public education receives the largest budgetary reduction in Perdue’s recommendations.

The proposed budget calls for over $314 million in program cuts, the elimination of 36 positions and additional funds to expand a number of programs.

Major expansions and reductions include:Expansions

Student Diagnostics for Grades K-3 and G5: $39 million.Additional monies for hand-held diagnostic devices for K-3 and grade 5 teachers for “real time” updates to student achievement feedback. ($17.7 million of these funds would be a recurring expense for annual software license fees)

North Carolina Virtual Public School: $10.9 million. Covers an expected 25 percent expansion in enrollment in this on-line learning program.

Teacher Compensation: Perdue proposes a one-time 0.5 percent bonus to all state employees to make up for the unpaid furlough salary reduction imposed last year. This “payback” bonus would total $62.5 million

Would also provide an average step increases of 1.8 percent to teachers and instructional support personnel and 1.6 percent for administrators

Retirement Fund: Allocate an additional $20 million for the Teachers and State Employees’ Retirement System

Local Education Agency (LEA) Management Flexibility: $135 million. Reduces state aid to LEAs. Gives LEAs flexibility to manage personnel cuts through attrition. LEAs are required to keep K-3 teacher and staff requirements unchanged. This reduction would be in addition to the $225 million flexibility reduction LEAs faced last year

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